We have $500,000 to invest and live off the interest/dividends. Age 57 don't want to work at all anymore.?

WE are selling our home and buying down and will have $500,000 after taxes to live off of. What is safe and a high yield?

The U.S. Treasury bonds are safest investment backed by the U.S. government, though the interest rate (yield) would be lower then the corporate bonds.

You may consider mix of U.S. Treasury bonds, CDs, high yield money market funds, and diversified mutual funds.

Checkout Bankrate.com. I have a money market checking account paying me 5.36% at AmTrustDirect. My account is FDIC insured. If I had $500,000 x .0536 I would earn at least $26,800 in interest per year. You would have to claim the interest on Schedule B when you complete your taxes.

HI
I am aware of a Private Placement Investment Program: which is a private trading group with 1400 independent brokers world-wide: compound interest daily averaging over 1% DAILY one full year! As this is compounded it is extremely profitable. It is an invitation-only program, ending around Sept 30th, but additions ok if you are in. Track record over a year. Unfortunately, I can't give details, as I need to respond to your request for information. Rules of Private Placement are strict, so I can only do it if you contact me, and I can explain further: probably talk on the phone first.I suppose you would have my email, so you could get me on it. I am retired, and can live of it very well (money can be withdrawn in a week). I get a consultancy fee based on the amount invested, but 1% + is net figure..
Good wishes Stanford

Do not invest in the stock market at this time.

Purchase 4-5 smaller properties and collect rent from them. There will always be a need for reasonably priced housing and there is no way that it can be moved overseas.

I know of an investment that can give a 100% return on your investment in less than 10 months. For example.. if you invest $15,000 - you will get up to $30,000 10 months later. For information, email mikeerv@yahoo.com

I will assume you have $500,000 after buying down and have claimed your primary residence exclusion. You qualify for the primary residence exclusion if you have lived and owned the property for 2 of the last 5 years.

A money market fund will yield you approximately $25,000 per year. Is that enough income for you in a year? The bond yields are not much higher so you may need to go to equities (stocks) to get a higher yield. Or you may consider buying income producing real estate.

Hmmm .... with an amount of money that big, you would be wise to seek out a fee-based investment advisor, one who charges for their time. The reason this is important is so that you do not use an advisor that works for a particular investment firm and thus has an incentive to sell you high-priced investments (e.g. a conflict of interest).

Unfortunately, risk and return are joined at the hip. In order to get a "high yield", you will have to take on some risk. If you want a safe investment, such as short-term, investment-grade bonds, you will have to settle for a lower yield.

Of course, the term "risk" has different meanings. If you are too conservative, there is a risk that your money will not grow ahead of inflation enough to provide you with a good living. Another risk is running out of money before you die. So, you will probably need to have at least some stocks as well as some bonds. Just off the top of my head, you will want a portfolio with roughly half bonds and half stocks ... although this is very much dependant on your risk tolerance and other sources of income (Social Security, Pensions, Annuities, etc.). Your advisor should be able to help you figure this out.

If general, you should avoid the following because of unecessary high costs:

- Avoid most variable annuities and "equity indexed" annuities. Fixed annuities and Immediate annuities are good options for retirees. However, Variable annuities are usually not recommended as they have very high costs. Make sure you understand any limitations, mortality expenses, and surrender fees before you get into an annuity. (Hint: http://www.vanguard.com and http://www.fidelity.com offer annuities with the lowest costs in the industry)

- Avoid mutual funds with a load and/or 12b-1 fees. Those are "sucker" fees and do not improve your return over the long run. Stick to no-load funds. In particular, seek out index mutual funds to get the lowest costs. (Once again, Vanguard and Fidelity have a wide array of no-load mutual funds.)

- Avoid Limited Partnerships. High fees.

- Avoid cash-value life insurance (whole life, variable life) policies, as they are fraught with high fees.

(Just so you know .... In my opinion, $500,000 is not enough to live off of without working, especially if there is a possiblity you might live into your 80's. A general rule of thumb is to only withdraw 4% of your portfolio every year for living expenses, which calculates to an annual income of $20,000 ... which will actually be less since you pay taxes. Anyway, this is a good reason to see an advisor.)

I recently read a press release stating that finance guru, Earl Matthews (aid4families.com), is trying to change the current pension scheme. I read the site and they make many interesting and valid points, they believe that they should win by default since they have the highest paying program. If more companies shared Mr.Matthews views, the system wouldn't be in the mess it is today.

You should check it out for yourself since their programs offer the highest returns without risk.

Our cash account is at 5.36%. We don't have a mort. so the money generated is fine for us . . .

I work with real estate investors that use private funds to buy real estate here in Ohio.

Typical deal looks like this:

Investor buys a house for $20,000.
Rehab costs $15,000.
They borrow the $35,000 from private individuals, and this money is secured by real estate.
The private lender (you) gets a mortgage, promissory note, and you're named as additional insured on hazard insurance policy.

The maximum term on these loans is 18 months, and they pay 10-12%.

Why don`t you invest in to my company. If interested I will send you more details.
Please see what I produce on this site:
www.veel.biz

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